Cadillac Fairview Finance Trust 'AAA' Debt Ratings Affirmed On Ontario Teachers' Pension Plan Guarantee

Stocks and Financial Services Press Releases Thursday June 27, 2013 09:00
TORONTO--27 Jun--Standard & Poor's
  • We are affirming our 'AAA' issue-level debt ratings on Cadillac Fairview Finance Trust's (CFFT) debentures.
  • The affirmation reflects our view of the guarantee from Ontario Teachers' Pension Plan (OTPP) on CFFT's debt.
  • Our view of OTPP reflects its independence from its sponsors, strong management, and financial and operating performances that are very strong in comparison with those of other peer pension plans. Our view also reflects the credit quality of the Province of Ontario (AA-/Negative/A-1+).
  • In our opinion, the difficult nature of economic and demographic trends of recent years and the fiscal challenges Ontario faces offset some of these strengths.
TORONTO (Standard & Poor's) June 26, 2013--Standard & Poor's Ratings Services today said it affirmed its 'AAA' issue-level ratings on Cadillac Fairview Finance Trust's (CFFT) debentures.
"The affirmation reflects our view of the guarantee from Ontario Teachers' Pension Plan on CFFT's debt," said Standard & Poor's credit analyst Stephen Ogilvie.

"Our view of Ontario Teachers' Pension Plan reflects its independence from its sponsors, strong management, and financial and operating performances that are very strong in comparison those of other peer pension plans," Mr Ogilivie added.

Standard & Poor's view also reflects the credit quality of the Province of Ontario (AA-/Negative/A-1+). In our opinion, the difficult nature of economic and demographic trends of recent years and the fiscal challenges facing Ontario offset some of these strengths.

Our issue-level ratings on CFFT's series A, B, and C debentures reflect our view of the creditworthiness of the OTPP, which provides CFFT with an unconditional and irrevocable guarantee for the three series of debentures.

The ratings reflect Ontario Teachers' Pension Plan's independence from its sponsors, strong management, and financial and operating performances that are very strong in comparison with other peer pension plans. Our view also reflects the credit quality of the Province of Ontario. In our opinion, the difficult nature of economic and demographic trends of recent years and the fiscal challenges facing Ontario offset some of these strengths.

The plan is independent of the Ontario government in our view. OTPP's independent board of directors appoints senior management and is a separate legal entity with ownership of its assets. The board alone establishes policies for investments, asset allocation, and risk management and develops and executes its own investment strategies. Funding requirements and actuarial assumptions are determined by independent actuaries.

CFFT was established under the laws of Ontario. The trust is a special purpose trust whose undertaking is limited to the borrowing of funds from time to time, lending funds to The Cadillac Fairview Group (CFG), and holding funds in cash and cash equivalents and other ancillary activities. CFG consists of Ontrea Inc. and The Cadillac Fairview Corp. Ltd. and related entities. OTPP's real estate portfolio is held through CFG.


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